I love investing. Stocks, real estate, businesses, you name it.
Here are the 17 rules I invest by.
- Every investment has a return: Either money or education.
- Don’t be an investor: Be an engineer. Don’t invest in anything you can’t control (and learn the levers that will provide a return).
- Redefine your idea of risk.
- It’s impossible to completely derisk any investment.
- Invest primarily for cash flow.
- Define why you are going to invest in something. (For me, I almost always build my investment decisions around what a business’ sales funnel looks like.)
- Define what would make you sell it: List specific triggers with all possible exits.
- Do your due diligence.
- Become an expert in just a few things: You can’t fully diversify so instead go the other way and become an expert on a few things.
- There is no such thing as passive income.
- Reinvest a portion of your income into more investments.
- Be courageous — things will fluctuate.
- If you want to scale, you need a system.
- Master yourself and get comfortable with uncertainty.
- Be a contrarian.
- Decision, action, and commitment are the 3 qualities of an investor.
- There is no perfect time or perfect investment. There is only “pretty good right now for me.”
VentureHype is a blog for angel investors that I write for regularly. In my June 17th article, “What the @#$ is SOX?” I talk to angel investors about how they can prepare their start-up today for SOX compliance in the future.
VentureHype is an initation-only blog for angel investors, and I write for them from time to time.
In my June 10th article How the @#$! Do I Cash Out?, I show angel investors how to create exit strategies BEFORE they begin investing.
Venture Hype is a blog focused on helping angel investors. Recently, they published an article of mine that highlighted what angel investors need to know about Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Read my June 3rd article: “Reader’s Question Answered: What The @$#! is GAAP and IFRS?“
Sometimes angel investors invest on their own, but there is safety in numbers. In my article published at invitation-only resource site Venture Hype on May 6th, I discuss the difference between member-led angel investor groups and professionally managed angel investor groups in an article entitled How to manage your angel group“.